Consumer Staple Stocks: Investing for the Long Haul
Food & Beverages in an Age of Tech Euphoria This Quick Take is simple. We think the market is in the process of transferring wealth from the impatient to the ...
Large vs Small Cap Stocks: Could the Past be Precedent
The Case for High-Quality Small Caps: The chart shows that small cap value stocks have only been this cheap vs. large cap stocks at the peak of the dot.com bubble The chart, from our paper Small Cap vs. Large ...
The Steep Cost of Stock Compensation
Are Stocks With the Highest Growth Healthy? The chart shows the market cap of firms where stock compensation represents over a third of SALES We have written three pieces about how stock compensation creates the illusion of cost-free cash ...
Small Cap vs. Large Cap Stocks: The Power of the Petite
Can the Might of Mean Reversion Send Small Caps Higher? Our research team published a very simple Chart for The Curious earlier this month comparing the relative size of small ...
Stocks versus Bonds and the Problem with Profitless Stocks
The Problem with Peak Prices and Record Low Yields: In Seth Klarman’s Margin of Safety Book, he discussed the 1980s junk bond mania before it imploded Back then many bonds were issued by companies that could not afford to ...
Inflation Investing
Geopolitics, Domestic Affairs and Investing in a Time of Uncertainty Introduction: A Break from Tradition This letter has an established tradition of bringing a highly specific and pointed approach to ...
Stock Prices & The Might of Mean Reversion
Making Simple Concepts Work for Your Investments: We have written a number of papers about the simple math that makes large cap investing in even high quality names difficult The chart below takes the market of large cap stocks ...
Equity Returns & Equity Duration
Data Points Endorsing Our Case for Buying What You Need? We do not make macro forecasts. The evidence is overwhelming….they are difficult to make. We do know there is a ...
Growth Investors – Speculating or Investing?
The Combustible Mix of Low Quality & High Expectations Introduction: On Friday, our research team published a Charts For the Curious that triggered a good deal of feedback. The chart ...
Profit Growth: The High Price of High Expectations
Bloomberg published an article citing academic research noting firms with high expected profit growth tend to underperform Longtime readers of ours flagged us as we wrote extensively about this issue and how to exploit it in our 2012 paper ...
Oil Producing Assets, Energy Investing & Forecasting
The Value of Hard Work and Humility After 25 years on a waiting list, my father’s family immigrated to the US from the shattered remnants of post WWII Europe. Arriving ...
Is Equity Beta Broken?
Beta, or the amount a stock price goes up and down relative to the market, is a popular measure of “risk” Famous investors such as Seth Klarman have observed that this idea is “preposterous”[1] Below is the market cap ...
